Wednesday, 18 June 2014

Ah...YTL crony deals are under the microscope I see

“You make it out as if you have never done business here, that you became rich because you went abroad. You made your first, second, third million here, at least say thank you, don't run this country down"

Tun Dr. Mahathir

YTL crony deals are under the microscope of public opinion and rightly so:

Dr Mahathir says the consortium's IPP project in Johor should be re-tendered to disallow any direct negotiations (Pix by Hussein Shaharuddin/ The Mole)

KUALA LUMPUR: Former Prime Minister Tun Dr Mahathir Mohamad believes that the independent power producer (IPP) project in Johor which was awarded to a consortium consisting YTL International Power Plant Bhd, Tenaga Nasional Bhd and SIPP Energy Sdn Bhdshould be re-tendered.

In an exclusive interview with The Mole, Dr Mahathir said: “I think it should. If you want to do away with the negotiated tender then you should reverse the decision, and have a tender.”

“You can have limited tender...you can have a number of companies, not everybody, but five or six companies which can be chosen and they can make a bid. Then there is competition.”

Dr Mahathir said this when responding to a question on whether the IPP project, known as project 4A should be re-tendered following growing criticisms against the project being approved under direct negotiation.

It was previously reported that the Energy Commission had awarded a fast-track power project 4A to a consortium consisting of YTL Power International Bhd, Tenaga Nasional Bhd (TNB) and SIPP Energy Sdn Bhd which is linked to the Johor royalty.

The Starreported that TNB Unions protested the direct award, saying all large scale energy generation awards should be made through competitive open tender.

“All large scale energy generation awards should be made through competitive open tender. TNB must also maintain a hold on all its assets and property under any circumstances,” TNB unions was quoted as saying.

Blogger Datuk Ahirudin Attan in criticising YTL Group managing director Tan Sri Francis Yeoh, for his ‘crony capitalism’ remarks, wrote that people in the industry have been complaining of the RM3.5 billion power project that Yeoh had just won, citing that the project went to YTL Power because of its "close links" with the Johor Palace.

“I call it Royal Capital Cronyism of the Highest Order, which carries the title Tan Sri,”Ahirudin added.

Meanwhile in explaining his blog post against Yeoh over the issue of the government practising crony capitalism, Dr Mahathir said: “It's not a tradition but when you run down a company unfairly, I have to answer to that. It's not fair.”

Elaborating further, he said: “You make it out as if you have never done business here, that you became rich because you went abroad. You made your first, second, third million here, at least say thank you, don't run this country down. As for me, I have lots of cronies. Every single businessman is my crony. I told them, we have this policy called Malaysia Incorporated and I told the business people "we are helping you because when you make profits, 28% of that profit belongs to the government."

Dr Mahathir stressed that the policy is formulated to enable private sector to do business and with the government’s aid.

“We meet with the private sector and we talk with them, we want to know what is their problem and we help to overcome their problems. Do you think this company would grow if we don't have that kind of attitude towards business? It won't. Most of this is for private sector, not government sector,” he added.

Responding to accusations that during his Prime Ministership, he and the Malaysian Government have been giving out lucrative power producing deals to YTL, Dr Mahathir explained that it was YTL which first came out with a proposal to provide sufficient reserve capacity.

“During the time when Tenaga (TNB) being run by (Tan Sri) Ani Arope and I thought Tenaga was not building up sufficient reserve capacity. Tenaga has no money even to build this plant so we want the private sector to do this. The first proposal came from YTL.”

“So, we gave to YTL but we gave to other people also. Malakoff got it, so many people got it. Why are you focusing on this particular issue? He must be grateful that he got it.”

New Straits Times reported that Yeoh had sent a letter to Utusan Malaysiasaying that he regretted the furore caused.

“I am truly saddened that my words have been misrepresented. Nevertheless, I humbly apologise if offence had been caused as a consequence. I very much regret it.”

“We are genuinely thankful to the Malaysian government and the people of Malaysia for allowing us to continue to thrive in this beloved country of ours,” he was quoted.